GENIUS ACT PASSED BY USA

GENIUS ACT PASSED BY USA

Why in News?

• On July 18, 2025, S. President Donald J. Trump signed the GENIUS Act into law.
• The Act is seen as a milestone in global digital asset regulation, aiming to:
  • Protect consumers
  • Maintain U.S. dollar dominance
  • Regulate stablecoins
  • Strengthen U.S. national security
• It positions the S. as a leader in the digital asset and cryptocurrency space.

WHAT IS GENIUS ACT?

• Full Form (unofficial/indicative): Government-Enabled National Innovation for United States (GENIUS)
• It is a comprehensive federal law regulating stablecoins and digital asset markets.
• Establishes the first-ever national regulatory framework for stablecoin issuance and governance.

KEY OBJECTIVES

1. Make the U.S. global leader in digital assets
2. Protect consumers in crypto markets
3. Ensure financial stability and trust
4. Preserve the S. dollar’s global reserve status
5. Counter illicit finance through better crypto regulation
6. Attract investment and innovation in digital finance

CONSUMER PROTECTION PROVISIONS

PRESERVING US DOLLAR DOMINANCE

• Stablecoins must be backed by S. Treasuries and dollars, increasing demand for U.S. debt.
• Reinforces the S. dollar as the world’s reserve currency in the digital age.
• Supports the U.S. ambition to be a digital economy superpower.

NATIONAL SECURITY & ANTI ILLICIT FINANCE MEASURES

STRATEGIC IMPORTANCE

• Part of Trump’s broader digital asset strategy: ○ Signed Executive Order to promote U.S. leadership in crypto (Week 1 in office) ○ Created a Strategic Bitcoin Reserve and Digital Asset Stockpile
• The GENIUS Act delivers on Trump’s campaign promise to make the U.S. the “crypto capital of the world”

COMPARISON WITH INDIA’S APPROACH

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